We knew sales figures were down, but we didn't know how bad Ford Motor Company's third quarter was until today, when it posted a $129 million loss.
Granted, that's better than the $8.7 billion loss it witnessed in the second quarter of 2008, but it's not good news for the company. In order to remain as close to its turnaround plan ("The Way Forward") as possible, a new round of job cuts are in order. According to Ford, approximately ten percent of all salaried staff in North America are expected to be laid off by the year's end. This figure is in addition to a fifteen percent reduction in white collar jobs announced earlier this year. "We continue to take fast and decisive action implementing our plan and responding to the rapidly changing business environment," said Ford CEO Alan Mulally. "We have a strategy that is broad and specific enough to handle the dramatic changes in today's environment. We will continue to assess the rapidly changing business environment and modify implementation of our plan accordingly." In addition to cutting jobs, Ford hopes to save money by streamlining its global engineering and product development, and eliminating merit-based pay increases for 2009. Source: Detroit News